FREE Property and Casualty Practice Exam (True or False) Questions to Test Your Exam Readiness
- pandcpacademy
- Jun 10
- 4 min read
Test Your Property and Casualty Insurance Exam Knowledge
Preparing for your Property and Casualty Insurance Licensing Exam can feel overwhelming. Many people spend weeks reading their course material, reviewing notes, and memorizing definitions—only to discover that the state exam tests much more than simple recall.
The Property and Casualty Exam is designed to evaluate whether you truly understand insurance concepts and can apply them to real-world situations. That's why so many people struggle, even after putting in hours of study time.
One of the most effective ways to prepare for your state exam is by taking practice exams that challenge your understanding and expose knowledge gaps before exam day. Combined with instructor-led lessons, practice exams can significantly improve your confidence and increase your chances of passing on the first attempt.
The quick True or False quiz below will help you assess your current knowledge and identify areas that may need additional review.
Need extra help? P&CP's comprehensive Property & Casualty Exam Prep Program includes over 12 hours of instructor-led video lessons covering all 12 P&C chapters, a 120 question realistic practice exam, downloadable study guide, and proven exam strategies that has helped thousands of people pass the P&C exam.
Now, let's see how you do. Try these Property and Casualty Practice questions and test your exam readiness. 👇
True or False: Property and Casualty Practice Questions
True or False?
1. An occurrence policy covers claims filed during the policy period, regardless of when the event happened.
True or False?
2. Flood damage is typically excluded from standard homeowners insurance policies.
True or False?
3. A loss payee and an additional insured have the same rights under an insurance policy.
True or False?
4. Subrogation allows the insured to sue the at-fault party directly after receiving an insurance payout.
True or False?
5. Under the principle of indemnity, an insured can receive more than their actual financial loss if they are fully insured.
True or False?
6. A Businessowners Policy (BOP) can be customized to include commercial auto coverage.
True or False?
7. An endorsement can both add coverage and remove coverage from an insurance policy.
True or False?
8. Inland marine insurance can cover property that does not move.
Check Your Answers
1. FALSE
An occurrence policy covers incidents that occur during the policy period, regardless of when the claim is filed. Many students confuse occurrence policies with claims-made policies, making this a common exam question. A claims made policy only covers claims filed during the policy period.
2. TRUE
Standard homeowners policies typically exclude flood damage. Flood Insurance is only covered through the National Flood Insurance Program (NFIP) underwritten by FEMA.
3. FALSE
A loss payee receives payment for covered losses (such as a lender with an interest in the property), while an additional insured receives liability protection under the policy.
4. FALSE
Subrogation is the insurer's legal right to pursue the responsible party after paying a claim. Once compensated, the insured generally transfers that recovery right to the insurer.
5. FALSE
The principle of indemnity prevents an insured from profiting from a loss. Insurance is designed to restore the insured to their financial position before the loss occurred—nothing more.
6. FALSE
Commercial auto coverage is not included in a standard Businessowners Policy. Businesses must purchase a separate commercial auto policy. BOP's are NOT designed for insured's to pick and choose coverages, a CPP is.
7. TRUE
Endorsements modify policy coverage. They can add protection, restrict coverage, or remove coverage entirely depending on the endorsement language. Many people think endorsements are only meant to add protection, but it can add or restrict coverage.
8. TRUE
Despite its name, inland marine insurance does not always involve transportation. Some inland marine forms insure scheduled property, equipment, or valuable items that may remain at a fixed location. Exam Note: Inland marine is commonly associated with movable property, but some inland marine forms cover scheduled or specialized property even when it is not being transported.
How Did You Score?
8 Correct
Excellent work. You're demonstrating strong understanding of several important Property and Casualty exam concepts.
5–7 Correct
You're on the right track. Focus on reviewing the topics you missed and continue practicing exam-style questions.
Below 5 Correct
Don't worry—many students struggle with these concepts initially. The key is identifying knowledge gaps before exam day.
Why Most Students Fail the Property and Casualty Exam
Many exam candidates spend too much time reading and not enough time applying concepts through practice questions.
The Property and Casualty exam is designed to test your understanding of insurance principles, policy provisions, exclusions, endorsements, and real-world scenarios. Simply memorizing definitions often isn't enough.
That's why successful students combine structured study materials with realistic practice questions and exam-taking strategies.
Want More Property and Casualty Practice Questions?
At P&CP Academy, we've helped thousands of students prepare for the Property and Casualty insurance licensing exam through:
✔ Comprehensive video lessons
✔ Step-by-step exam preparation strategies
✔ 120+ realistic practice questions
✔ Downloadable study guides
✔ Proven study plans designed to help students pass faster
Whether you're taking the exam for the first time or preparing for a retake, our program provides the tools and support you need to build confidence before exam day.
Ready to Pass Your Property and Casualty Exam?
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Get instant access to our complete Property & Casualty Exam Prep Program and start studying today.
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